Værdiansættelse af Matas A/S

Jonas Krøier Hansen & Mohammad Shahbaz Qasim

Student thesis: Master thesis


Friday 31 May Matas send out a press release which stated intents to IPO on the stock exchange in Copenhagen. The major shareholder was Svenska M Holding which is a Swedish subsidiary to the equity fund CVC Capital Partners. Svenska M Holding had purchased Matas in an acquisition in 2007 where it took over 69.4 % of the company. The purpose of this master thesis is to estimate the value of one share on stand-alone basis of the Danish company Matas A/S at the date for the IPO on June 28 2013. The value of the one share will be compared to the offer price of 115 DKK per share and a description of the subsequent development in the market value of the share. The company was incorporated in 1949 and has since grown big and today it is Denmark’s biggest retail seller on the market for beauty and health products. The annual revenue amounts to 3.2 billion DKK in 2012/13 based on revenue from more than 250 retail stores and a national web shop. The beauty and health market is divided into four product segments, Mass Beauty, High-End Beauty, VMS and OTC. Matas is market leader on the product segments Mass Beauty and High-End Beauty. Based on a strategic analysis the company’s strategic situation is mapped and the company’s internal and external non-financial value drives has been identified. The analysis shows that Matas has a relative good strategic position compared to its competitors. Especially the economic development is an important nonfinancial value driver for Matas together with Matas own resources and skills. A financial analysis was made to map the company’s financial value drivers. It shows a good and stable economic performance with a positive development in the key financial ratios compared to the competitors. Both strategic and financial analysis is summarized in a SWOT model. This model makes the foundation for the budgeting. The overall budget is mostly effect by the economic development, purchase of associated shops, opening of new Stylebox shops and the effect from the competitors. The budget shows an overall sales growth of 2.08 % in the terminal period. The fixed capital was effect by asset turnover ratio as most of the assets relates to goodwill from the 2007 acquisition. Hereafter a valuation of the company has been made based on the budget assumptions and the budget accounts. The valuation is based on the cash flow model DCF. In the model the weight average cost of capital (wacc) was estimated amounting to 7.34 %. The valuation estimated a share price of 145.41 DKK more than 20 % higher than the offer price of 115 DKK. The estimated stock price is subject to a sensitive test/stress test. It shows that changes in the wacc, sales growth or in asset turnover ratio will have a relative significant effect of the stock price. Finally, the results have been put in perspective with the development of the market value.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2014
Number of pages157